Delhi B&B fire: Owner wanted to open hotel, application rejected in 2022, say cops

3 min readNew DelhiJun 17, 2026 05:46 AM IST

Police said they have collected all relevant documents linked to the bed and breakfast facility to strengthen their case. Bajaj and two employees have already been arrested in connection with the incident and the investigations in the case are still underway.

Lavkesh Bajaj, the owner of Flourish Stay in South Delhi’s Malviya Nagar where a massive fire earlier this month killed 23 people, had applied to the Delhi Police in 2022 for a licence to operate a hotel from the premises. But the application was rejected because he did not possess the mandatory health and trade licence from the Municipal Corporation of Delhi (MCD) and a No Objection Certificate (NOC) from the Delhi Fire Service (DFS), The Indian Express has learnt.

According to police sources, Bajaj, who was arrested hours after the blaze, was involved in the medical tourism business since 2012 and was living in the Hauz Rani area. He also owned a property in Chhatarpur, where he accommodated medical tourists visiting the city.  “After the Covid pandemic, he realised that he could expand his business by opening additional facilities. In 2022, he purchased a three-storey house in Hauz Rani, and decided to develop it into a full-fledged facility. He subsequently began constructing three additional floors to increase the number of rooms,” a source said.

The source added that Bajaj applied for a hotel licence through the Delhi Police Licensing Department in August 2022. However, the application was rejected.  Officials said that, at the time, Delhi Police issued final hotel licences only after applicants submitted all mandatory clearances, including licences from civic authorities, revenue records, and a fire NOC from the DFS — Bajaj had not secured these clearances.

The licensing system was revised in 2025, and Delhi Police no longer issues such licences.

Investigators had earlier claimed that Bajaj went on to construct additional floors and operate 26 rooms, despite having approval for only six rooms under the B&B scheme.  “Since construction of the building had already begun, he (Bajaj) decided to obtain approval under the Bed and Breakfast (B&B) scheme administered by the Delhi Tourism department,” a source said.

For registration under the B&B scheme, it was mandatory for the owner to reside at the same premises. Police alleged that Bajaj showed his accountant as the owner of the property before the Delhi Tourism and Transportation Development Corporation (DTTDC), which subsequently issued the B&B licence.

Police said they have collected all relevant documents linked to the bed and breakfast facility to strengthen their case. Bajaj and two employees have already been arrested in connection with the incident and the investigations in the case are still underway.